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Investment FAQS

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Individual 401 (k) Plans

An individual 401 (k) plan for owner-only-businesses, those with no employees other than the owner’s spouse and no plans to add employees in the near future.

Key Benefits of an Individual 410 (k) Plan:

  • Works like a 401 (k)
  • Both salary deferrals and profit sharing contributions are discretionary. You do not have to make deferrals or a profit sharing contribution each year.
  • Rollovers from other eligible plans, including traditional IRAs, are permitted for consolidation ease.
  • Contributions are tax deductible, and earnings accumulate on a tax-deferred basis.
  • Loans are available.

Who Can Establish:

  • Owner-only businesses with no employees other than the owners and their spouses. If you have employees or anticipate hiring in the near future, this plan is not appropriate for you.

Annual Contributions:

  • All contributions are discretionary. Compensation is earned income for self-employed individuals or unincorporated businesses.
  • The maximum salary deferral contribution is the lesser of $16,500 or 100% of your compensation.
  • The profit sharing contribution cannot exceed 25% of your eligible compensation.
  • Combined contributions (both salary deferrals and profit sharing) cannot exceed the lesser of 100% of compensation of $49,000.
  • Additional catch-up contributions of up to $5,500 are available if you are age 50 or older.

Individual 401 (k) Candidates:

  • Corporation, partnerships, sole proprietorships, and nonprofit entities that have no full time employees.
  • Owner-only business with part-time or seasonal employees that can be excluded from plan coverage.
  • Owner-only businesses with their spouse being the only employee.

Contact a LPL Investment Consultant to go over your options for retirement.

Financial Advisors of LPL Financial are Registered Representatives with, and Securities, Advisory Services and Insurance Products are offered through LPL Financial and its affiliates, Member FINRA/SIPC. LPL Financial is not a registered broker/dealer. Investments are: Not FDIC insured, may lose value, are not bank guaranteed, and are not obligations of LPL Financial. LPL Branch Office located at 1311 Carolina Ave, Washington, North Carolina 27889. Investment Advisory Services offered through LPL Financial, a SEC Registered Investment Advisor


This site is designed for U.S. residents only. The services offered within this site are offered exclusively through our U.S. registered representatives. LPL Financial U.S. registered representatives may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.


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